Artificial Intelligence (AI) systems rely on vast datasets, including copyright-protected works, for training and development. Copyright-protected works are often used to train AI without rights-holders’ permission. As such, rights-holders are unable to keep track of what parts of their works are being used to train the AI system. This raises legal and commercial questions.
Under the Data (Use and Access) Act 2025, the government was required to carry out a consultation and produce a report and economic impact assessment to address these questions. This consultation, titled ‘Copyright and Artificial Intelligence’, ran from 17 December 2024 to 25 February 2025. On 15 December 2025, the government published a statement of progress which outlined its work to date on copyright and AI and provided some results from the consultation. This article summarises the consultation’s scope, policy options, results and implications for businesses.
Consultation overview
The aim of the consultation is to ensure copyright law supports AI innovation while protecting the rights-holders’ rights. It focuses on the below objectives.
- Trust and transparency. Clear disclosure of how copyright-protected works are used in AI training.
- Rights-holder control. Mechanisms for rights-holders to have control over the use of their content by AI developers and receive fair remuneration for its use.
- Innovation enablement. AI developers should be able to have access to a large pool of high-quality data for AI development.
Policy options under review
The government sought views on four potential approaches to clarify copyright law to facilitate AI innovation.
- Option 0. Maintain current law. This means that the uncertainty would remain for rights-holders and AI developers.
- Option 1. Require licences to use copyright-protected works in AI training. This means that AI developers would only be permitted to use copyright-protected works for training AI models if they have acquired an express licence to do so.
- Option 2. Broad data-mining exception. This would allow unrestricted use of copyright-protected works for AI training. This would improve AI development but does not address the rights-holders’ rights.
- Option 3. A data-mining exception which allows rights-holders to reserve their rights. This would be a default exception unless the rights-holder actively opts out. This is the government’s preferred option.
The consultation garnered 11,512 responses, revealing that 88% of online respondents supported Option 1. Only 7% supported Option 0, 0.5% supported Option 2, and 3% supported Option 3.
The results showed that creative industries generally favoured licensing-based models, emphasising the need for compensation and control, and supported the introduction of statutory transparency measures. Whereas technology stakeholders favoured the exceptions-based models, with many supporting non-legislative or light-touch approaches to regulation.
Next steps
The government will prepare a full report and economic impact assessment on the use of copyright-protected works for the development of AI systems by 18 March 2026. These will assess each of the options put forward, potentially suggest alternative options, and assess how each option will impact the rights-holders and the AI developers, as well as any commercial and economic implications. These documents will then potentially form the basis of any future legislation.
Implications for businesses
While no immediate changes apply, businesses should prepare for potential new obligations by carrying out the below steps.
- Auditing AI training data to ensure datasets are lawfully sourced and documented.
- Reviewing contracts and incorporating provisions for AI-related licensing and transparency.
- Monitoring developments and government updates in this area.
The UK Government’s consultation marks a pivotal moment in shaping the legal framework for AI training. For businesses, proactive compliance and strategic planning are essential. The incoming report and economic impact assessment will provide clarity, but businesses should start preparing now.
If you would like to discuss the contents of this article in more detail or commercial contracts more generally, please do not hesitate to get in touch with the team directly.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at January 2026.